Great Depression Flashcards
Define bankruptcy
Financial failure caused by an inability to pay one’s debts
Define deficit spending
Spending more money that is received and creating debt as a result.
Define payroll tax
Are taxes imposed on employer or employees.
Define overproduction
Is the accumulation of unstable inventories in the hands of a business.
Define pension.
A sun paid regularly to a person, usually after retirement
Define collateral
Something promised as security for the repayment of a loan.
Define mortgage
Loan in which a house in used as collateral.
What is the difference between a recession and a depression?
Both are times when a country’s economy is doing poorly but a depression is worse.
What does “Laissez Faire” mean when referring to the government and economics?
Laissez Faire means the government does not intervene in the economy.
What was “Black Tuesday?” What date did it occur on?
The day the stock market crashed.
The day after Roosevelt was inaugurated, what action did he take to resolve the bank crisis?
The day after Roosevelt was inaugurated he closed the banks for 4 days. He then made it a “Bank Holiday”.
What was the Reconstruction Finance Corporation? Which President is responsible for starting the RFC?
The RFC funded “critical businesses” and provided direct unemployment relief through the creation of public works projects. Hoover is responsible for the program.
What were “Hoovervilles?”
Hoovervilles were places the homeless people go.
What were the causes of the Great Depression?
The causes of the Great Depression were overproduction, Stock market crash, and excessive expansion of credit.
What were the effects of the Great Depression?
The effects of the Great Depression were Poverty, People lost money, and Bankruptcy.
What was Hoover’s approach to ending the Great Depression?
Hoover’s approach to the ending of the Great Depression was that he formed the RFC to provide money to small governments.
What was Roosevelt’s approach to ending the Great Depression?
Government creation of programs to assist the jobless and reforming the American economy.
What were the goals of the New Deal?
The goals where reemploy people, reform the stock market, improve work conditions, and end the bank crisis.
What was the Bonus Army? How did Hoover handle the Bonus Army? What was the result of Hoover’s actions?
A bonus for WW1 veterans. He refused to give it to them so they protested and he gassed them. He became very unpopular.
What was the Court Packing Plan? Why did Roosevelt try this?
Roosevelt’s attempt to appoint 6 additional supreme court justices. Roosevelt didn’t want the supreme court to declare his new deal programs unconstitutional so he wanted to appoint justices that would side with him.
What does WPA stand for and what did it do?
The WPA was Works Progress Administration: Built libraries, schools, hospitals, and roads as well as hiring artists and writers.
What does CCC stand for and what did it do?
The CCC stands for Civilian Conservation Corps: Improved public lands by Social Security Act planting trees, clearing trails, fighting forest fires, etc.
What does FDIC stand for and what did it do
The FDIC stands for Federal Deposit Insurance Corporation: Insured money deposited in banks.
What did the Social Security Act do?
The Social Security Act did Provided insurance for unemployment and retirement.
